Interview with Asif Khan, elected Executive Committee Member of LCCI and Group Managing Director of Ishraq Group and Sun Shine Industries
BY M QADEER
Reporter: Congratulations on being elected as an EC member of LCCI. What will be your primary focus after this victory?
Asif Khan: Thank you. After getting elected, my formost priority will be to address the rising cost of doing business in Pakistan, especially with regard to the high markup rate. I believe the State Bank of Pakistan (SBP) must reduce the current markup rate to a single digit. This would significantly ease the financial burden on businesses and encourage investment, which is necessary for economic growth.
Reporter: Pakistan was once a major exporter of motorcycles. What is the current situation of the industry?
Asif Khan: Pakistan used to be one of the largest motorcycle exporters, producing millions of units annually. Unfortunately, production has dropped dramatically to around 3,000 units due to the rising cost of raw-materials, energy, and other inputs. This decline is alarming and is required an immediate attention from both the government and industry stakeholders.
Reporter: You talked about the energy crisis. How does it affect the competitiveness of Pakistani products?
Asif Khan: The energy crisis is one of the biggest weaknesses we face. Pakistani products are not competitive in the international market due to the high cost of electricity, which has increased per unit production costs. If we want to compete globally, we need affordable and reliable energy solutions. Without resolving this issue, it will be difficult for Pakistani businesses to survive, let alone thrive.
Reporter: Pakistan is also a leading exporter of footballs. How is that sector doing?
Asif Khan: Yes, Pakistan is the second-largest exporter of footballs. But it’s ironic that, despite being a major player in this industry, we have no players to represent the country at the international sporting level. This is another area where we lack long-term vision. We must develop a strategy not only to boost production but also to promote sports at the grassroots level.
Reporter: What are your thoughts on the current duty and tax structure?
Asif Khan: The current duty and tax structure is unviable. High duties and taxes make it difficult for businesses to import necessary goods and machinery. This leads to a lack of innovation and hampers growth. The government needs to revise these policies to make it easier for industries to operate and grow, particularly when it comes to sectors that have the potential to increase exports.
Reporter: How does the uncertainty in the country affect foreign investment?
Asif Khan: The uncertainty in terms of law and order and economic stability is a major deterrent for foreign investors. They are concerned about the security of their capital and whether they will be able to earn a return on investment. The government has to take immediate measures to restore investor confidence by ensuring stability, both economically and politically.
Reporter: What are the prospects for producing four-wheelers locally?
Asif Khan: Given the current situation, I believe it’s very challenging. Producing four-wheelers requires huge capital investment, and with the current uncertainty and unfavorable business environment, no one is willing to take that risk. The government must has to create a more supportive environment for such ventures, including offering incentives to investors and ensuring stability in key areas like energy and law enforcement.
Reporter: Any final thoughts on what the government should prioritise?
Asif Khan: The government is required to take a holistic approach. Reducing the markup rate, resolving the energy crisis, revising duty and tax structures, and ensuring law and order should all be top priorities. Without attending these issues, it will be difficult to attract foreign investment and improve local production. We have great potential, but we need the right policies to unlock the potential.
